Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
My wife is a self-employed realtor. Last year she made a good amount of money, which created hellacious estimated quarterly tax payments for 2007. For 2006, I had already calculated our tax burden and had filled out the necessary forms, but because I was uncertain about what to do about the estimated SE tax payments for 2007, I hired an accountant to file my 2006 taxes, and as part of the deal, he would advise us on what to do next. The accountant told us to give him call when my wife earned some money. Needless to say, my wife earned a small commission ($1500) in Sept.07, but did not earn anymore commissions until Dec. 07. We called for advice in December and our accountant said that we would have to pay about a $50 penalty, but we could pay our SE payments the same time as we pay our taxes on April 15.

My question is,huh? Is that it? Am I missing something? Why did I hire this accountant? Any comments from anyone familiar with the annualized method of calculating one's self-employment taxes would be greatly appreciated.
Print the post  

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.